Australian universities are facing unprecedented dropout rates among domestic students with a quarter of all domestic students who commenced a bachelor’s degree in 2017 dropping out by 2022.
Data from the Institute of Public Affairs (IPA) has shown only 62 per cent of domestic students who began their studies in 2017 graduated within six years.
Meanwhile international students, who pay full tuition and are ineligible for HECS/HELP loans, exhibit a stronger completion rate, with 79 per cent of student having graduated over six years and 19 per cent dropping out, while 2 per cent are still enrolled.
The IPA’s data indicated a growing dependence on international students for financial revenue, with enrolments rising from approximately 95,000 in 2000 to nearly 450,000 in 2022.
International students now represent 29 per cent of all university enrolments.
The IPA attributed the high dropout rates among domestic students to various factors, including increased remote learning, declining academic standards, and a weakening campus culture.
The IPA said universities appear more concerned with maximising revenue than ensuring quality education for local students.
Emily Watkins dropped out of university after her university moved to remote learning during the COVID-19 pandemic.
She said she did not feel supported by the university to continue with her studies off-campus.
“It feels like universities are more interested in the money from international students than supporting us,” Emily said.
“I struggled so much with remote learning and felt disconnected from the campus community.”
The Federal Government has announced plans to cap new international enrolments at 270,000 next year in order to prioritise domestic enrolments.
The IPA said the rising number of international students has impacted university culture, contributing to domestic dropouts and increasing reliance on overseas students.
Domestic student dropout rates are disproportionately affecting specific fields of study, leading to challenges in maintaining enrolment and workforce development in those areas.
Nearly half of the domestic students who began a teaching degree in 2017 graduated by 2022 – 70 per cent lower than a decade ago.
Medicine and dentistry maintain high completion rates of 91 per cent and 88 per cent respectively, while disciplines such as nursing, engineering, law, and psychology see much lower rates.
Research Fellow and National Manager for Generation Liberty at the Institute of Public Affairs Brianna McKee said Australian universities have transformed into “degree factories” primarily catering to international students.
Despite these challenges, Australia continues to be a top destination for international students.
A survey by IDP Education Australia revealed Australia is the preferred choice for 24% of prospective students, outpacing the US, UK, Canada, and New Zealand.
The Institute of Public Affairs’ domestic university student dropout rate research was discussed by Peta Credlin and Caroline Marcus on Sky News Australia on 23 October 2024.
